Date: Wednesday 25 May 2005
LONDON (ShareCast) - The General Retailers sector had few friends today after key players reported further misery on the high street.
Comet owner Kesa Electricals warned it was still having trouble in the UK, although its other operations are seeing growth.
Comet sales fell 2.2% on a like for like basis, as “the soft trading seen at the start of the year continued throughout the quarter and further deteriorated in April.” Comet will now make a small loss in the first half, said Kesa.
GUS also talked of tough conditions as it announced plans to demerge its 66% stake in Burberry and said it would look to further break-up the rest of the group in the longer term.
The retail giant said it has “decided to demerge the remaining 66% stake in Burberry to GUS shareholders by way of a dividend in specie later this year”.
Shares in GUS fell back as the market had been expecting more concrete proposals regarding a separation of the business, though most analysts had tipped Experian to be demerged first.
High street favourite Next also proved a drag after it went ex-dividend today.
Electronic & Electrical Equipment blew a fuse after electronic components outfit Eurodis said sales in April and May were tighter than envisaged, although it narrowed losses in the ten months to 31 March 2005.
Pre-tax losses fell to €20.5m compared to the €74.1m loss incurred in the twelve months to 31 May 2004, but sales dipped by 10.7% in a similar ten-month period last year to €244.1m.
Top performing sectors so far today
Forestry & Paper 8,553.60 +1.13%
Construction & Build. Mat. 3,113.40 +0.84%
Information Technology Hardware 224.90 +0.81%
Real Estate 3,347.50 +0.59%
Automobiles 3,606.50 +0.43%
Bottom performing sectors so far today
General Retailers 1,972.80 -1.66%
Mining 8,222.30 -0.96%
Electronic & Electrical Equip. 1,102.30 -0.71%
Health 3,235.90 -0.57%
Food & Drug Retailers 3,486.30 -0.52%
